Supplier experience as antecedent to supplier satisfaction : An explorative study of SMEs

Abstract

Suppliers play a crucial role in maintaining and increasing their customer companies' market competitiveness. Prior research recognizes the importance of supplier satisfaction to a strong and effective supply chain; however, research reflecting the supplier experience is scarce. That is surprising because customer-related research recognizes the interrelatedness and independence of customer experience and satisfaction. This study introduces the concept of supplier experience and explores the factors contributing to it in small and medium-sized enterprises. Further, by building on social exchange theory, the study introduces the process that shapes supplier experience. The findings demonstrate that supplier experience is formed when a supplier compares its expectations to the costs and benefits of a customer relationship and to alternative relationships. The comparison is made based on the reactions and responses to the interaction and stimuli of a supplier regarding communication, relational practices, the use of power, and the use of digital technology in a customer relationship and comparing these elements to the benefits of the relationship. The findings of the study offer directions for further research and discussions on the supplier experience.